Radian Group (RDN): Revisiting Valuation After a Recent Share Price Pause

Radian Group (RDN) has been quietly grinding higher this year, and the stock’s recent pause is a good excuse to recheck the story, especially with steady earnings and mortgage credit trends supporting the backdrop.

See our latest analysis for Radian Group.

At around $34.73, the recent pullback in Radian’s share price looks more like a breather within a solid run, with positive year to date share price returns and a standout three year total shareholder return above 100 percent suggesting momentum is still broadly intact.

If Radian’s steady grind higher has your attention, this is a good moment to broaden your search and explore fast growing stocks with high insider ownership.

With earnings still growing, shares trading at a double digit discount to analyst targets and a sizable gap to some intrinsic value estimates, investors now have to ask: is Radian quietly undervalued, or is the market already pricing in its future growth?

Most Popular Narrative Narrative: 10.2% Undervalued

With Radian Group last closing at $34.73 against a narrative fair value of about $38.67, the storyline leans toward underappreciated earnings power over time.

The ongoing entry of millennials and first-time homebuyers into the housing market is driving persistently strong housing demand, which is reflected in Radian's all-time high mortgage insurance in force and continued growth in new insurance written supporting future revenue growth.

Read the complete narrative.

Curious how modest top line growth, shifting margins and a re rated earnings multiple can still point to upside from here? The full narrative explains the math behind that gap between today’s price and its longer term earnings path.

Result: Fair Value of $38.67 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent reliance on mortgage insurance and affordability pressures for first time buyers could quickly challenge today’s upbeat earnings and valuation assumptions.

Find out about the key risks to this Radian Group narrative.

Build Your Own Radian Group Narrative

If this storyline does not quite fit your view, or you prefer hands on research, you can assemble a personalized narrative in minutes: Do it your way.

A great starting point for your Radian Group research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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